PSU Bank Nifty rose 1.25 per cent led by lenders such as Bank of India, Oriental Bank, Syndicate Bank and SBI on expectations that the government would soon reveal details of a recapitalisation plan. Results are due later this month.

"Today is largely seen as a corrective recovery in the market because it had gone into an oversold territory", said Deven Choksey, promoter, KR Choksey.

"On the macro front upcoming RBI policy and Gujarat state election will be an influential factor for investors which is steering the market to consolidate", said Vinod Nair, Head of Research, Geojit Financial Services. Participants sensed value-buying opportunities after the equities' recent lacklustre run, making stock valuations attractive, according to market participants.

Indian stock market extended gains from Thursday, on positive cues from other Asian equities and U.S. markets overnight. MSCI's broadest index of Asia-Pacific shares outside Japan was barely changed.

Japan's Nikkei led the way as the yen eased on the dollar, rising 1.1 per cent on top of Thursday's 1.45 per cent bounce to be nearly back where it started the week. Paris CAC fell 0.29% and Frankfurt's DAX shed 0.13%.